Deathwatch: Premier Foods lose £230m

19 March 2012

An example of "some food"

deathwatch Premier Foods has signed a deal with lenders that will force it to offload £330m of assets and hand over any extra income in a “cash sweep” to banks, according to reports.

The company, which owns Mr Kipling and Hovis and now wondering why they didn't notice the huge number of other things that are regarded to be the best thing since sliced bread.

The details of its financing deal were revealed alongside the company’s annual results, which showed the company nosediving into the red with a £230m loss.

Trading profit fell from £245.7m to £173.7m, with pre tax profit going from £28.5m in 2010 to a £230m loss thanks to a£282m impairment charge in addition to sales falling from £2.3bn to £1.9bn “reflecting the challenging consumer environment” as new chief Executive Michael Clarke said the company "intends to draw a line under the performance of 2011,".

In Premier Food’s statement Mr Clarke said: "Having put the financing and strategic building blocks in place, our immediate priorities are to implement this re-financing package, continue stabilising the business, re-focus the portfolio and invest in our future growth." Well, he WOULD say that, wouldn't he?

However, shares fell more than 4pc in early trading to 11.65p. Warburtons are said to be thrilled at the news. Or something

TOPICS:   High Street News   Supermarket   Economy


  • Mary P.
    Have they looked down the back of the sofa?
  • Me
    Any company who can't make money off Mr K's finest are doing something severely wrong somewhere. Parhaps they could cut out the 3 players of packaging a lot of their cakes have, that'd save them a bob or two.
  • Boris
    I had one of their toastie loaves once; tasted just like a normal loaf with slightly thicker slices. It's false advertising like this that's to blame.
  • shoplifter
    Do I have to put all back....fuck me did`take that much
  • samuri
    if you cut down on quality and ingredients expect this to happen,concentrate on making it as it was 20 years ago. without the fucking chemicals and over the top packaging.
  • samuri
    this was an exceedingly good death watch
  • JT
    Maybe they should stop giving away cakes at bus stops?
  • Al
    The refinancing deal means that Premier Foods is hardly looking like they'll go tits up for another couple of years. Sure, they have lots of debt but they also have some big brands ... big brands such as Hovis whose sales plummeted 90% last year. In other news, Premier Foods is recruiting to replace it's entire marketing department ...
  • captain c.
    WOT SAMURI SAID!!! Hovis in particular lost my loyalty when it doubled in price and halved in quality about 5-6years ago; quality has picked up slightly since then, but asking £1.50 for a loaf of bog standard bread is taking the piss. Mr Kipling seems to consist of nothing but sugar, or air and sugar if you buy the pies. Others are doing it better and for less. (Lidl and Aldi spring to mind).
  • Frank P.
    I've never liked Kipling. The worst thing he ever done was that fucking annoying bare necessities song with that mogwai character, tigger and all those other twatting happy jungle characters.
  • Head
    Frank, were there any foxes in the song?

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